S&P Global Ratings said it placed its 'BB' corporate credit rating and other ratings on Energy Transfer Equity L.P. (NYSE: ETE) on CreditWatch with negative implications. The '4' recovery rating on the senior secured debt is unchanged and indicates expectations of average (30%-50%; higher end of the range) recovery if a default occurs.

"We expect to resolve the CreditWatch listing upon close of the merger between ETP and SXL, at which time we expect to lower our rating on ETE by one notch to 'BB-', which is three notches below our assessment of ETP's and SXL's pro forma consolidated group credit profile of 'bbb-'," said S&P Global Ratings credit analyst Michael Grande.